What I do before I buy or sell a stock.

People sometimes ask me what kind of software do I use to keep track of investments or to decide what and when to buy and sell. They are always amused by the blank stare I give them.

AK71 is very old school which is a nice way of saying I am outdated when it comes to technology. No kidding.

OK, want an example of how I work? Here is a recent one:

This is the most recent of my scribbles regarding Yongnam.

Yes, I scribble on bits of paper (and hope I don't lose them which I rarely do, anyway).

Some of you might recognise what has been scribbled on the piece of paper. Technical analysis (TA). I usually do this when I have decided to buy or sell based on fundamentals and, yes, I scribble fundamental analyses (FA) I have done on pieces of paper too.

Some of my scribbles get organised and make it to my blog as fully fleshed out articles but many never do. Well, in my pre-blogging days, most of the scribbles would eventually end up in the bin. So, the current situation is probably a big improvement.

I also cut out articles from newspapers and periodicals, using a highlighter or pen to draw attention to what I think is useful information. Example? See: Art of wealth accumulation.

Oh, if you are wondering if I bought more shares of Yongnam's, yes, I did at 24.5c a piece yesterday. That is at a discount to their NAV/unit of 26c or so.

After divesting most of my initial investment in Yongnam in 2013, yesterday's purchase of the company's stock was my third since end October 2013. If Mr. Market continues to offer a good price, I would probably buy more.

Own the kind of assets Yongnam has at a discount? Own a business that will benefit from the projected doubling of  MRT lines in Singapore by 2030? Sounds good to me.

Whenever I scrambled to invest, often, I lost money. Whenever I scribbled to invest, often, I made money. What is the moral of the story? I wonder.

Related posts:
1. Strategy to grow wealth and augment income.
2. When to BUY, HOLD or SELL?
3. Recommended books for FA and TA.
4. 3 points in stocks investing.
5. 7 steps to passive income from stocks.

Voluntary contributions to CPF.

I am starting the year with moves to improve financial security for me and my dad.

I am making a voluntary contribution to my CPF account again this year. The idea is to max out the annual limit of $30,600 and let the magic of compound interest contribute to my retirement funds. Yes, the government will be helping me in my efforts. Although this will not be tax deductible, it will help to provide me with a peace of mind.






I have also decided to do quarterly voluntary contributions to my dad's Medisave Account from now on. As he has pre-existing medical conditions, he was unable to upgrade his Medishield plan. Thus, his share of medical bills are heftier.

My dad's Medisave Account is also depleted due to the many times my paternal grandmother was hospitalised in recent years. So, helping him to build up his Medisave Account seems like a good idea.

My dad is still working and paying income tax. So, with regular voluntary contributions to his Medisave Account from me, he will pay less income tax too. Yes, it is tax-deductible for the recipient only.

Voluntary contribution form.
Click to enlarge.

His Medisave Account will also be beefed up with some help from a 4% annual interest income. Yes, getting some help from the government again.

My dad's example really shows how important it is to have a good H&S plan in place. So, if you and your parents are relatively healthy and do not have a good H&S plan in place, you really should do something about it.

On that note, HAPPY NEW YEAR!

Related posts:
1. How to get free medical insurance?
2. CPF or SGS?
3. Pay less income tax.
4. Enhanced Incomeshield for my mom.
5. Millionaire or not, plan for retirement.

Visit CPF's website: here.